The following condensed adjusted trial balance relates to Loud & Proud Music at December 31, 2021, a partnership formed by Simon Loud and Willard Proud. The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows:
1. A salary allowance of $ 40,000 to Loud and $ 50,000 to Proud.
2. The remainder is to be divided equally.
Instructions
a) Prepare a schedule that shows the division of profit/loss to each partner.
b) Prepare the closing entries for the division of profit/loss and for the drawings accounts at December 31, 2021.

Question

The following condensed adjusted trial balance relates to Loud & Proud Music at December 31, 2021, a partnership formed by Simon Loud and Willard Proud.  The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows:
1. A salary allowance of $ 40,000 to Loud and $ 50,000 to Proud.
2. The remainder is to be divided equally.
Instructions
a) Prepare a schedule that shows the division of profit/loss to each partner.
b) Prepare the closing entries for the division of profit/loss and for the drawings accounts at December 31, 2021.

Quizplus · Accepted Answer

The Answer of The following condensed adjusted trial balance relates to Loud & Proud Music at December 31, 2021, a partnership formed by Simon Loud and Willard Proud.  The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows:
1. A salary allowance of $ 40,000 to Loud and $ 50,000 to Proud.
2. The remainder is to be divided equally.
Instructions
a) Prepare a schedule that shows the division of profit/loss to each partner.
b) Prepare the closing entries for the division of profit/loss and for the drawings accounts at December 31, 2021.

The Following Condensed Adjusted Trial Balance Relates to Loud